Mobile money transforming electricity payment in Uganda

ESI Africa

The two largest electricity distribution companies in Uganda, Umeme Limited and Uganda Electricity Distribution Company (together with a market share of over 97%), adopted mobile money services to receive payments from electricity consumers. This introduction and adoption of mobile money payment platforms facilitated realisation of the following benefits:

To consumers: Mobile payments have saved consumers both time and money. In rural areas, where household settlements are sparsely populated, consumers (before implementation of the mobile payments) would travel long distances to distribution utility service centres to effect payments.

For utilities: Improved revenue collection since the distribution utilities have been able to reduce the time taken to collect revenue (because of the convenience of mobile payment systems) has reduced working capital requirements. In addition mobile payments, among other factors, have increased and improved revenue collection rates by distribution utilities, which were recorded as 91.0% in 2012 to 99% in 2017.